Lenders like Arbor (which is strictly an Agency - Fannie / Freddie - shop), will not touch any loan below $1MM.  

Example: Park 1 has their rules too strict that it is very difficult to sell properties within it -- hard to get qualified buyer.

He maybe required to pay some sort of alimony to her, the military is pretty strict about this.

I represent a lot of sellers, and when dealing with FHA buyers, we routinely accept $5,000. 

You need to live there as your personal residence.A hard money loan is not for owner occupied, that is strictly for investment property.

If you look at it from a strictly business perspective then dead equity is a bad thing to have.

(And I am absolutely stealing it)   We were very fortunate with our first STVR purchase and are looking for another this fall...and are staying strictly in our own parameters. 

I know HML who do this routinely though.. it defiantly happens I would never do it for all the reasons you mention above its JUST NOT RIGHT

We routinely work with and share best practices with other turnkey companies.While there are many bad actors within the industry as there are in any industry, please be mindful as you post not to insinuate that all turnkey companies operate the same. 

@William Robinson I would recommend running the numbers with CapEx, vacancy, and routine repairs all around the 5-7% mark.